Prop Home — Landlord Resource Centre — Updated 2026 ⚠ Phase 1: 1 May 2026 — Act Now

Essential Landlord Guide — Prop Home

Renters'
Rights
Act 2026

The biggest change to landlord law since 1988 is coming on 1 May 2026. As your letting agent and property management specialists, Prop Home is here to guide you through every change — so you stay compliant, protected, and confident.

By Prop Home · Simple Property Solutions Updated 2026 15 min read
35 Years since the last reform this big We've Got You
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— 1 May 2026

The Renters' Rights Act is the most significant reform to landlord law since the Housing Act 1988. It received Royal Assent in October 2025 and Phase 1 comes into force on 1 May 2026. At Prop Home, we're committed to making sure every landlord we work with is fully prepared, protected and compliant.

Section 01

What Is The Renters' Rights Act?

The Renters' Rights Act is a wide-ranging piece of legislation designed to improve standards across the Private Rented Sector. While the Government's intention is to give tenants greater security, the Act also brings new responsibilities and opportunities for landlords — and it's important you understand both.

Here is a summary of the key changes the Act introduces:

🚫

Section 21 Abolished

You can no longer serve a "no-fault" eviction notice. All possession must now be sought through Section 8 with a valid legal ground.

📋

Section 8 Expanded

New and updated possession grounds give you a clear legal route to reclaim your property when you have a valid reason.

♾️

No More Fixed-Terms

All tenancies become rolling periodic agreements. Your tenants stay until either party gives proper notice.

📊

Annual Rent Reviews Only

Rent increases can only happen once a year via a formal Section 13 notice. No other method is legally valid.

🐾

Pets Must Be Considered

You must consider all pet requests from tenants and respond within 28 days. Blanket refusals are no longer allowed.

⚖️

Discrimination Banned

Refusing tenants because they receive benefits or have children is now formally illegal under the Act.

🏛️

Landlord Ombudsman

All private landlords must join a new Government-backed ombudsman scheme for impartial dispute resolution.

🏠

Decent Homes Standard

For the first time, the Decent Homes Standard will apply to all private rental properties across England.

Section 02

Implementation Timeline

The Act is being introduced in three phases. Phase 1 is the most significant and affects you immediately — but being aware of what's coming in Phases 2 and 3 allows you to plan ahead with confidence.

1
Phase 1 — 1 May 2026

The Core Changes

  • Section 21 no-fault evictions abolished
  • All fixed-term tenancies convert to periodic tenancies
  • Rent increases limited to once per year via Section 13
  • Rental bidding wars banned — no above-asking offers
  • Rent in advance capped at one month
  • Discrimination against families and benefit claimants banned
  • Tenant right to request a pet formalised
  • Enhanced local authority enforcement powers in force
2
Phase 2 — TBC 2026

Landlord Registration

  • Private Rented Sector database launched — all landlords must register
  • Landlord ombudsman scheme becomes operational
  • Prop Home will manage registration on your behalf
3

Property Standards

  • Decent Homes Standard formally applied to all PRS properties
  • Full enforcement of new property standards regime

Section 03

Phase 1 In Detail

The End of Fixed-Term Tenancies

From 1 May 2026, all assured shorthold tenancies — including any fixed-term agreements currently in place — will automatically convert to periodic assured tenancies. This means your tenancies will no longer have a fixed end date.

⚡ New Notice Periods for Landlords

As a landlord, you must now give four months' notice to end a tenancy. Your tenant only needs to give two months' notice. Prop Home will manage all notice processes on your behalf.

Section 21 Is Abolished — What This Means For You

You can no longer serve a Section 21 "no-fault" notice to regain possession of your property. Instead, you must use a Section 8 notice and provide a specific legal ground for possession — such as rent arrears, anti-social behaviour, or wishing to sell or move into the property.

⚠️

Important: Using the wrong possession ground will result in your court application being rejected, causing significant delays and additional costs. Prop Home will handle all Section 8 notices correctly on your behalf.

Annual Rent Reviews Via Section 13

You can only increase rent once per year, using a formal Section 13 notice. Any rent review clauses in existing contracts, or renewal-based increases, are no longer valid. Prop Home will manage your annual rent review process and ensure all notices are served correctly and on time.

"Every landlord now has the right to review their rent every single year — and with costs continuing to rise, you absolutely should. The key is doing it correctly, with proper notice and clear market evidence behind any increase." — Prop Home, Property Management Specialists · Sheffield

Rent Increases Can Be Challenged

Tenants have the right to challenge a Section 13 rent increase at the First-tier Tribunal if they believe it is above market rate. This makes it more important than ever to base any increase on clear, local market evidence — something Prop Home will prepare for you as part of your annual review.

Bidding Wars Banned & Rent in Advance Capped

You can no longer accept offers above the advertised asking price. Additionally, you may only collect one month's rent in advance — the traditional practice of taking six weeks upfront is no longer permitted. If you currently let to students or international tenants, speak to Prop Home about alternative protection options.

Pets & Anti-Discrimination Rules

You must fairly consider all pet requests from tenants and respond within 28 days. Refusing a tenant because they receive housing benefit or have children is now formally illegal. Prop Home will guide you on what constitutes reasonable grounds for refusal — and ensure your property is never marketed in a way that breaches the new rules.

Section 04

What This Means For You As a Landlord

1 in 5
Tenants say they would challenge any rent increase — even a fair one. Good documentation is essential.
£40k
Maximum fine local councils can now impose on landlords for non-compliance with PRS regulations.
4 mo
Minimum notice you must give a tenant before you can reclaim possession of your property.

Longer Possession Timelines

Section 8 possession proceedings are more complex and typically take longer than Section 21 cases. With courts under increasing pressure, you should plan for longer timelines if you ever need to regain your property. This makes thorough tenant referencing — and rent protection insurance — more important than ever.

The Importance of Rent Protection Insurance

With possession taking longer and Section 13 appeals possible, your rental income is more exposed than it has ever been. Rent protection insurance covers your income during any possession proceedings, giving you financial security while the legal process runs its course. Prop Home can arrange this cover for you — ask us for details.

Prop Home Recommendation

Every landlord on our books should now have rent protection insurance in place before 1 May 2026. The cost is modest — the peace of mind is priceless. Call us on 0345 86 86 868 to discuss your options.

Your Property Standards

With the Decent Homes Standard coming in Phase 3, now is a good time to review the condition of your property. Prop Home can carry out a property assessment and identify any works that might be required — helping you get ahead of the requirements before they become mandatory.


Section 05

How Prop Home Supports You

At Prop Home, we don't just manage your property — we protect your investment. Here's exactly how we'll support you through every stage of the Renters' Rights Act:

Full Tenancy Management

We handle all aspects of your tenancy — from correctly converting existing agreements to periodic tenancies, to serving Section 13 rent review notices on time and in the right format. You don't need to worry about paperwork or compliance.

Section 8 Possession Handling

If you ever need to regain possession of your property, we will identify the correct legal grounds, prepare the notice correctly, and support you through the process. Getting this right from the start avoids costly delays.

Annual Rent Reviews

We will proactively review your rent every year, research local market rates, and serve your Section 13 notice correctly. We'll also advise you on how to evidence your increase should a tenant choose to challenge it.

Landlord Registration (Phase 2)

When the Private Rented Sector database launches, we will manage your registration on your behalf — so you remain compliant without the admin burden.

Tenant Referencing & Insurance

We conduct thorough tenant referencing on every applicant to minimise risk from the outset. We also work with specialist insurers to arrange rent protection cover that pays out during any possession proceedings.

Section 06

Your Landlord Action Checklist

Tick off each item before 1 May 2026. Not sure how to do any of these? Call Prop Home on 0345 86 86 868 — we'll handle it for you.

  • Speak to Prop Home about converting your tenancies to periodic agreements
  • Understand your new Section 8 possession grounds — ask Prop Home to walk you through them
  • Set up an annual Section 13 rent review process with your letting agent
  • Ensure rent in advance on new tenancies is capped at one month
  • Review all marketing materials — remove any "No DSS" or "No Children" restrictions
  • Arrange rent protection insurance before 1 May 2026
  • Understand the new four-month notice requirement for possession
  • Have a process in place for responding to pet requests within 28 days
  • Speak to Prop Home about a property condition review ahead of Decent Homes
  • Prepare for landlord registration when the PRS database launches (Phase 2)
  • Make sure all tenancy agreements are in writing and up to date
  • Discuss your portfolio with Prop Home to identify any specific risks

Section 07

Frequently Asked Questions

Yes. From 1 May 2026, all existing fixed-term tenancies will automatically convert to periodic tenancies — regardless of when they were signed. There are no exemptions. Prop Home will write to all affected tenants on your behalf to explain the changes.
Yes — but you must use Section 8 and provide a valid legal ground. Valid grounds include rent arrears, anti-social behaviour, wishing to sell the property, or wishing to move in yourself. Prop Home will identify the correct ground and manage the process for you.
Rent can only be increased once per year using a formal Section 13 notice. The increase must reflect open market rates and the tenant has the right to challenge it at tribunal. Prop Home manages this process for all landlords on our books — contact us to set up your annual review schedule.
You must respond within 28 days and can only refuse on reasonable grounds — such as the property being unsuitable for the animal or the head lease prohibiting pets. A blanket "no pets" policy is no longer acceptable. Prop Home will manage all pet requests on your behalf.
The tenant can apply to the First-tier Tribunal to have the increase reviewed. The tribunal will assess whether the proposed rent is in line with local market rates. Having clear, documented evidence of comparable rents in your area is essential — Prop Home prepares this as part of every annual review.
Yes — when the Private Rented Sector database launches in Phase 2 (expected later in 2026), all private landlords will be legally required to register. Prop Home will manage this on your behalf to ensure you remain fully compliant.
Call us. That's exactly what we're here for. Prop Home specialises in guiding landlords through complex legislative change. Whether you have one property or a large portfolio, we'll make sure you're compliant, protected and getting the most from your investment. Call 0345 86 86 868 or email info@prophome.co.uk.